Zenyatta had previously acquired 80 per cent by having
spent $10 million on exploration over the last two years. Now it has
picked up the remaining 20 per cent.

Cliffs will receive 1,250,000 shares
from Zenyatta and will be granted a net smelter return royalty of
0.75 per cent.

"This transaction is of strategic
importance to our company," said Aubrey Eveleigh, Zenyatta
president and CEO, in a Nov. 21 statement.

We now own 100 per cent of the Albany
graphite deposit and, more importantly, have eliminated the back-in
right that Cliffs held under the original agreement. This allows
Zenyatta the liberty of negotiating with another party, especially an
end user of graphite, at any time along the development path of our
graphite deposit."

Zenyatta is developing a graphite
deposit first discovered in 2011. The company it is "only and
largest 'vein type' graphite deposit under development in the world."

The Albany deposit is located 30
kilometres north of the Trans-Canada Highway, near the communities of
Constance Lake First Nation and Hearst.